I understand the reasoning behind this, but unless I missed something, there is a fatal flaw here. There are times when it is necessary to accelerate rapidly in order to avoid an accident. Take away that option and you may potentially be causing more accidents, or at least accidents that may not have occured otherwise. If the system has telematics and is mandatory, instead of limiting the speed, a points system could be implemented which monitors driving behaviour and contacts the driver by email or otherwise, encouraging or penalising and offering opportunity for an explanation when it is an isolated incident.
Another option coming in some countries is insurance PAYD, (Pay as You Drive) effectively charging you insurance based only on the time you drive, rather than at a flat rate, so people who drive more, pay more, but potentially using telematics, can also have their premium based on the quality of driving, e.g. no speeding, regular harsh acceleration and braking etc:
Daily MailBig brother speed watcher: Government plans pre-fitted GPS devices on …Daily MailPrivate vehicles in India will soon come fitted with a GPS-based speed-limiting device – already in use abroad where it is called Intelligent Speed…
See on www.dailymail.co.uk